Connect with us

Yellen Takes the Stand

Published

on

With Ben Bernanke termed out on January 31, 2014, nothing much is expected to change with accommodative Federal Reserve monetary policy. Yesterday, Federal Reserve Vice Chairman Janet Yellen came forward before the U.S. Senate Banking Committee for her confirmation hearing. Political theater played in the background as some policymakers tried to act tough with the Fed Chairman nominee. Already holding the #2 slot at the Federal Reserve, Yellen’s confirmation is all but a shoe-in. However a Republican senator on the committee, David Vitter of the state of Louisiana, plans to oppose her. Earlier in November, Senator Vitter took a stand speaking out against the Federal Reserve’s bond buying program.

Magic bullet measures such as bond buying and asset purchases by the central bank will likely continue.

In 2008, the Federal Reserve played their QE card and moved to bring interest rates to zero. Yellen reiterated the only thing to do is to “to do everything possible to promote a very strong recovery.” With ease, Yellen demonstrated that the overall risk is worth the unintended consequences of quantitative easing, playing down the notion of asset bubbles forming in various markets. With boldness, she indicated a continuation of the Federal Reserve’s extraordinary monetary stimulus under her watch. Magic bullet measures such as bond buying and asset purchases by the central bank will likely continue. Money managers are happy Yellen is in the chair, as equity markets would tank with a less dovish central bank head.

Asset owners such as U.S. pensions face dire consequences due to the Fed’s accommodative policies. Encouraged risk-taking and speculation into asset classes such as life settlements, re-entering the CMBS market and illiquid assets proliferated in Pensionland.

Russia-Japan Investment Fund to Back Wood Pellet Production in Russia

Published

on

The Russian Far East has a lot of timber, and for that wood pellets is a source of biofuel. A while back, the Russian Direct Investment Fund (RDIF) formed the Russia-Japan Investment Fund (RJIF) with the Japan Bank for International Cooperation (JBIC). RDIF and JBICIG Partners as part of RJIF, together with RFP Group and Japan’s Prospect Co., Ltd. have agreed to collaborate and consider potential investments in Russia’s biofuel industry. JBICIG Partners is a subsidiary of the Japan Bank for International Cooperation.

[ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]

Continue Reading

RDIF Lures Asian Investors Toward Russian Surgical Robot Project

Published

on

The Russian Direct Investment Fund (RDIF) is partnering with a number of unnamed Asian co-investors to allocate capital toward a project to create and manufacture Russian surgical robots. [ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]

Continue Reading

Oman Infrastructure Investment Fund Near Creation

Published

on

The Oman State General Reserve Fund is nearing the formation of the Oman Infrastructure Investment Fund. This fund will raise capital from third-party investors to invest in Oman’s infrastructure and in certain areas of technology.

The fund will also invest in areas of technology in healthcare, specifically in medical equipment. The fund will also explore investing in blockchain technologies.

Continue Reading

Popular

© 2008-2018 Sovereign Wealth Fund Institute. All Rights Reserved. Sovereign Wealth Fund Institute ® and SWFI® are registered trademarks of the Sovereign Wealth Fund Institute. Other third-party content, logos and trademarks are owned by their perspective entities and used for informational purposes only. No affiliation or endorsement, express or implied, is provided by their use. All material subject to strictly enforced copyright laws. Registration on or use of this site constitutes acceptance of our terms of use agreement which includes our privacy policy. Sovereign Wealth Fund Institute (SWFI) is a global organization designed to study sovereign wealth funds, pensions, endowments, superannuation funds, family offices, central banks and other long-term institutional investors in the areas of investing, asset allocation, risk, governance, economics, policy, trade and other relevant issues. SWFI facilitates sovereign fund, pension, endowment, superannuation fund and central bank events around the world. SWFI is a minority-owned organization.